Memphis Tennessee Bankruptcy Blog

One of the consequences of not being able to pay your Tennessee energy bills is that one day you may come home, flick on a light switch, and find your lights no longer work. Not only that, but your television and computers will not come on, your air conditioner will not cool your home and your refrigerator no longer cools your food. As it has turned out, your utility company has decided to switch off your power, leaving you in the dark and adding misery to your financial problems.

The Huffington Post points out that utility costs actually are one of the top ten reasons why people go bankrupt. Even if you have not incurred a lot of credit card debt, student loan debt or other expenses, the problem of rising costs of air conditioning, heat and electricity can propel some homeowners into financial debt. The need to maintain a home’s utilities may make it seem impossible to get a handle on your finances, and if your utility company is not appeased, they will shut off electricity to your home.

Anyone new to Tennessee bankruptcy proceedings is likely to be curious about whether they can qualify for Chapter 13 bankruptcy. While it is true that Chapter 13 offers the possibility of preserving assets or an entire business in the face of creditor demands, this type of bankruptcy requires specific criteria for someone to be able to file for it. A person can be disqualified for filing Chapter 13 for a number of reasons.

As Findlaw explains, you cannot file for Chapter 13 if you are a business. You may file for Chapter 13 as an individual or in a joint filing with a spouse. However, business organizations like a limited liability company (LLC) or a corporation are not eligible. Exceptions are only made if the business income and your personal income are the same. If, for example, you work as a sole propitiator, you can file for Chapter 13. You may also file if you are part of a business partnership. You just file for the debts that you possess personal liability for.